In Figure 28.1,emission fees will

Name: In Figure 28.1,emission fees will
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Question

Quizplus · Accepted Answer

Emission fees increase the cost of production, which will increase the marginal cost of production. This is also known as a negative externality, which is reduced by the implementation of emission fees. Therefore, option B is the correct answer. The other options are incorrect because emission fees aim to promote internalization of externalities, which leads to an improvement in social welfare.

In Figure 28.1,emission Fees Will